India reduces windfall tax on diesel and ATF exports

The Indian government has reduced the windfall tax on the export of diesel and Aviation Turbine Fuel (ATF) for the fortnight beginning October 1. According to a notification from the Ministry of Finance, the Special Additional Excise Duty (SAED), which includes the road and infrastructure cess, on diesel exports has been lowered from 20 rupees per liter to 16 rupees per liter.

The tax on ATF exports has also been decreased from 15 rupees per liter to 10.5 rupees per liter. Meanwhile, the duty on petrol exports remains unchanged at 0.5 rupees per liter. There are no changes to the existing duty rates for petrol and diesel intended for domestic consumption.

These windfall taxes were originally implemented to ensure domestic fuel availability amid escalating tensions in West Asia and to prevent exporters from capitalizing on global price differences. The recent adjustments aim to balance the financial health of oil marketing companies with the necessity of maintaining domestic supply.